Let
me start by thanking the Ministry of Foreign Affairs for the
opportunity to address this important event. It is UNDP’s privilege to
attend today’s meeting. We have been supporting the Ministry of Foreign
Affairs since 2006 to strengthen its capacity for economic diplomacy.
Soon we will be launching a new partnership on national capacity
enhancement for international economic integration. This new project
will support the Government in developing key national policies and
strategies on international economic integration through evidence-based
research and international and south-south collaboration.

As the
UN Development Programme, our role is to bring the human development
perspectives to the debate about economic growth and international
integration, and to provide relevant regional and global perspectives.

Projections
of the world’s top 10 economies in 2050 see China as the largest
economy, overtaking the U.S. before 2027; Indonesia rising to the 9th
largest economy; and India becoming the third largest economy, nearly
catching up with the U.S. by mid-century. However, per capita income of
Asia’s emerging economies will still be much lower than that of the
developed countries of the OECD club.

Though the Asia’s biggest
development success is its poverty reduction record, the agenda is not
finished: poor people are increasingly found in Middle-Income Countries.
In fact, of the 1 billion poor people in the world, more than 70% live
in Middle-Income Countries.

To add to this complexity, increasing
inequalities and disparities between population sub-groups pose a
growing threat to economic and social stability within countries and in
the region.

Emerging economies in Asia, including Viet Nam are
looking for ways to “restructure” their economies, to move up in the
value chain and at the same time ensure that the growth is inclusive and
equitable, that it is sustainable and resilient to economic and climate
change shocks.

For the past two decades economic integration has
been an important contributor of economic development in many Asian
countries, including Viet Nam. Viet Nam has been actively involved in
several economic integration processes including unilateral
liberalisation of trade and investment regimes, implementation of WTO
obligations, negotiation and implementation of ASEAN commitments
including the ASEAN Free Trade Agreement (AFTA) as well as various
bilateral initiatives.

These efforts paid off as the country’s
economy grew exponentially in the last twenty years. From 1990 to 2011,
Viet Nam’s Human DeveIopment Index value has increased by an impressive
37 percent. Viet Nam’s progress over time in the Human Development
dimensions – namely life expectancy, schooling and incomes – showed most
improvement in per capita incomes. Economic growth has deservedly been
the single most important driver of human development in Viet Nam.

While
growth oriented policies have been successful so far, policy-makers
across Asia and in Viet Nam must continue to ensure that growth remains
robust and brings equal benefits to the poor, generates jobs for the
youth and in informal sectors, and translates into progress in social
development. In the case of Viet Nam, the progress in health and
education has been less rapid, while other countries in the region have
invested more heavily in educated and skilled workforce to maintain the
momentum of economic growth and to re-orient their economies at the time
of global crises.

The current economic slowdown has hit Asia's
traditional export markets. We see re-emergence of protectionist
policies in some countries. Countries in Asia need to increasingly rely
on domestic and regional demand. In fact, Asia-Pacific has recently
emerged as the main source of final demand for the region’s exports,
with sizable middle class to absorb a growing range of products and
services. Boosting purchasing power of the poorer population is emerging
as a key priority for many Middle-Income Countries. It calls for
broad-based investments in education, health services, social protection
and basic infrastructure, which will facilitate access to employment
and business opportunities for all social groups.

Distinguished guests:

International
economic integration has been a successful strategy, which could
deliver even more dividend if paired with smart investment decisions
benefiting the social sector in order to achieve the full potential of
human development.

The United Nations believes firmly that the
MDG 8 target of “open, rule-based, fair trading and financial systems”
can make a great contribution to global development. The removal of
barriers to trade and investment and more transparent economic
regulations are key to this vision. These measures hold greater
potential still if countries pursue inclusive and equitable growth
models. UNDP stands ready to provide further advice and expertise
towards sustainable growth and economic integration initiatives.

I
once again thank the Ministry of Foreign Affairs for convening this
important round table, and wish all participants a successful and
productive meeting.